NIM18060 - Class 1B NICs : Liability : Calculation : General

Class 1B NICs are payable at a fixed percentage rate tied to the Class 1 not-contracted out secondary contribution rate.

They are payable on

• the value of all items covered by the PSA which would normally give rise to a Class 1 or Class 1A liability
• the total amount of tax payable by the employer under the PSA.

Class 1B NICs will be due on the total tax payable under the PSA regardless of whether the PSA includes any items which would normally be liable for Class 1 or Class 1A NICs.

The table below shows the appropriate Class 1B rate for PSAs entered into for the years identified.

See NIM18080 for an example of how to calculate Class 1B NICs.